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Explain What is Total Quality Management (TQM) Describe the Evolution of TQM Explain Concepts in TQM Explain What is Cost Benefit Analysis Explain the.

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Presentation on theme: "Explain What is Total Quality Management (TQM) Describe the Evolution of TQM Explain Concepts in TQM Explain What is Cost Benefit Analysis Explain the."— Presentation transcript:

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2 Explain What is Total Quality Management (TQM) Describe the Evolution of TQM Explain Concepts in TQM Explain What is Cost Benefit Analysis Explain the Principles of TQM Pyramid Explain Kano’s Five Types of Quality Explain Kinds of Measurements in TQM Explain the STINGER Principle Describe the Various Tools used in TQM Describe the Focus Areas of TQM Explain the Steps for the Quality Improvement Process Explain Four Absolutes of Quality Improvement Process Explain the Implementation of TQM Explain Deming’s 14 Points to Improve Quality List the Benefits of TQM Course Objectives

3 Look at the products given below. Introduction So, what do you think is common among all the given products?

4 Yes, they are all ‘defective products’. This means that each of the shown products has some or the other defect in it. Introduction

5 As you can see, the glass sphere has an air bubble in it. Introduction The matchstick’s tip has sulphur missing on it. The weaving of the cloth piece is not proper and uniform.

6 No one would like to buy or use defective products. Hence, you can understand that it is very important that products as well as services that are delivered to customers should be free from defects to ensure customer satisfaction. Introduction

7 When products and services are delivered with great ‘quality’, then such defect-free products and services help to build the prestige and brand of the company. Products with a good quality are of a superior grade or possess a degree or grade of excellence or worth. Introduction

8 One of the methodologies used to eliminate defects and deliver high-quality products and services is Total Quality Management. Introduction

9 You should bear in mind that TQM is an organization-wide activity that has to reach every individual within an organization. Let us now learn about the ‘Total Quality Management’ or ‘TQM’ in detail. Introduction

10 What is Quality? Quality is the responsibility of each and everyone in the organization. Let us look at each in detail. Customer Satisfaction Quality GradeAccuracyPrecision

11 Stage 4: Total Quality Management The fourth stage of TQM evolution is ‘Total Quality Management’. ‘Total Quality Management’ or ‘TQM’ involves the understanding and execution of quality management principles and concepts in all aspects of business activities.

12 Kaizen Some of the most important concepts in Total Quality Management (TQM) are: Let us look at each in detail. Kaizen: Japanese for “Change for better”. Small, continuous improvements

13 The quality management plan describes how the company’s employees will carry out the quality policy. It documents the outputs from the quality activities that were performed, the procedures used to complete the quality activities, and the resources required. Quality Management Plan

14 Optimal quality is reached at the point where the incremental revenue from improvement equals the incremental cost to secure it. Cost Benefit Analysis Incremental Revenue Incremental Revenue Incremental Cost Incremental Cost Optimal Level

15 What is Six Sigma? Six Sigma is the measure of quality that strives for near perfection. It is a disciplined, data-driven methodology focused on eliminating defects. A Six Sigma defect is defined as anything that falls outside of a customer's specifications. Six Sigma is a reference to a statistical measuring system, equivalent to just 3.4 defects per every million opportunities (Snee, 2003).

16 The TQM Pyramid There is a need to build a brand new management pyramid as ‘The Quality Journey’ firmly believes in demolishing out-of-date management pyramids. This new pyramid known as the ‘TQM pyramid’ is built such that it can live up to the vision and demands inbuilt in the definition of TQM. The TQM Pyramid is a simple pyramid with a base foundation and four sides. Hence, TQM is built and relies on the five principles represented by the four sides and base of the TQM Pyramid.

17 Quality Checkpoints and Quality Control Points The most common internal quality measurement that can be used in most firms and processes as a control point is: Total Defects per Unit = Number of Defects/Number of Units Produced or Tested A defect is anything which causes customer dissatisfaction, whether specified or not. A unit was any unit of work.

18 Excessive downtime MeasurementsMaterials Machines People No PM program Old equipment Product out of spec Poor training Don’t care attitude Don’t track uptime Poor downtime definition Funds Cause and Effect Diagrams Cause and Effect Diagrams (Fishbone or Ishikawa Diagrams): ‘Cause and Effect Diagrams’ are used to find the root cause of a defect. They help to stimulate thinking and organization of thoughts. They can be used in quality planning, as well as quality control. 1 Cause and Effect Diagrams (Fishbone or Ishikawa Diagrams)

19 Scatter Chart/Scatter Diagrams/Dot Plot 3 ‘Scatter Plots’ are used to find the relation between two sets of data or two variables that both relate to the same ‘event’. Therefore, if you are able to imagine a straight line or curve that can be drawn through the data so that it "fits" as well as possible, then there is a correlation between the two data sets or two variables.

20 Pareto Charts 6 Pareto Charts: A Pareto Chart is 'a series of bars whose heights reflect the frequency or impact of problems. The bars are arranged in ascending order of height from left to right. This shows that the categories represented by the tall bars on the left are relatively more important than those on the right.

21 Waste of Correction Waste of Correction as repairing a defect wastes time and resources. It is like work in a Hidden factory as shown below in image. Repairing a defect wastes time and resources (Hidden factory) Waste of Overproduction Waste of Processing Waste of Conveyance Waste of Inventory Waste of Correction Waste of Motion Waste of Waiting Waste of Correction Operation 1 Operation 1 Test Operation 2 Operation 2 Failure Investigation Failure Investigation Rework Failure Investigation Failure Investigation Rework Product Hidden Factory

22 This is a DEMO Course On – Total Quality Management. Learn Management Concepts & Skills Rapidly with easy to understand, richly illustrated Self-Paced Learning Modules and Downloadable Powerpoint Presentations. This is a DEMO Course On – Total Quality Management. Learn Management Concepts & Skills Rapidly with easy to understand, richly illustrated Self-Paced Learning Modules and Downloadable Powerpoint Presentations. ManagementStudyGuide.com As a premium member, you get access to View Complete Course Content Online and Download Powerpoint Presentations for More than 120 Courses in Management and Skills Area.


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